The Role of Estimation on Construction Life Cycle

Estimates serve a number of different functions in the construction industry. The reason for estimating is to provide the most realistic prediction possible of time and cost at any given stage in a project. Over the life of a project the estimator should be able to produce a series of estimates, from an early estimate at beginning, to the final account, in which the increasing accuracy of the estimate is reflected in the decreasing extent of risk and uncertainty. All estimates take the form of base estimates, plus allowances for uncertainties and specific contingencies as required. The role of the estimator or practitioner in cost engineering is vital to the success of a construction project. The estimators are responsible for predicting the most economic costs for construction in a way that is both clear and consistent. Although an estimator will have a feel for the prices in the marketplace, it is the responsibility of management to add an amount for general overheads, assess the risks and turn the estimate into tender.